Let's consider a consumer who consumes only two things, Soy Burgers (SB) and Tofu Dogs (TD). (Feel free to translate these as sirloin burgers and turkey dogs if you prefer :)

    If we know that soy burgers sell for $5 each and tofu dogs sell for $4 each and our consumer has $100 to spend each month, we have all the information we need to graph her budget constraint. The vertical intercept, on the SB axis, must be 20 ($100 ÷ $5), and the horizontal intercept, on the TD axis must be 25 ($100 ÷ $4). The slope of the budget constraint is - 4/5 (- $4 ÷ $5).

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